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Monday, March 18, 2012
Standard Chartered Bank gives a low cost for deposits into the bank
Standard Chartered’s corporate deposits are the lowest in the market.
The Bank has the lowest cost of deposits among its peers in the market. As low as 3 per cent, it’s 2 percentage points below the cut-off for the best.
It’s also one of the best among private banks.
India’s Standard Chartered Bank (SCB) is offering the lowest cost of deposits among its peers in the market. That’s an advantage for customers of the private bank, who have been finding a decrease in the interest paid by other banks.
The bank has the lowest cost of deposits among its peers in the market. As low as 3 per cent, it’s 2 percentage points below the cut-off for the best, says of a survey by Axis Bank.
Let’s have a look at the cost of SCB bank deposits:
% of Time
% Per Month
% Per Year
Per rupee earned
Weekend
0.88
0.0
0.05
Week
1.45
0.1
0.14
Mon – Fri
3.50
0.3
0.36
A low cost of deposits is the best for customers. Customers have more money on deposit with them, leading to increased savings. Of course, it’s a win-win situation for the bank, because the bigger deposits are, the more profits it will have.
But banks need to keep that cost of deposits low. The benchmark for a low cost is 12 per cent of the amount of the current liabilities that a bank has. When the standard is met, the bank is more likely to be regarded as a safe investment.
The Bank now has a cost of deposits that is below the benchmark for best, but has a level of 2 percentage points behind the cut-off.
How much is cheap?
How does SCB bank deposits compare with other low-cost banks like the L&T Bank